Less than a week after election night in the U.S., the United Nations’ annual climate conference begins in Azerbaijan. COP29, as this year’s conference is called, has climate finance and carbon markets on the agenda. It’s no secret that the outcome of the U.S. presidential election could shift the tenor of negotiations significantly on both topics. Everyone knows there’s one candidate who’s better for the climate and one who will be much, much worse.
Even if Harris wins, however, the United States may well continue to shirk its global climate finance obligations. If the U.S. can’t deliver on what it promises at COP29, it may not matter what actually happens there.
Negotiators at COP29 are tasked with setting what’s called the New Collective Quantified Goal on climate finance, a goalpost for the amount of cash governments must put up to meet global climate investment needs. Global South countries excluding China have suggested that they require more than $1 trillion per year in external finance to meet their climate targets. An agreed-upon NCQG will also help all countries flesh out the latest iteration of their national climate plans, also known as Nationally Determined Contributions, as required by the Paris climate agreement.
And yet preliminary discussions over the summer were inconclusive, not just on the NCQG target itself but also on which countries are expected to contribute and what kinds of financing (e.g. public, private, loans, grants) will count toward it. More controversially to some climate activists and civil society groups, negotiators are also using COP29 to finalize a framework for the implementation of Article 6 of the Paris Agreement, which calls for the creation of a global carbon credit market, which countries could use to trade emissions reductions and contribute to each others’ NDCs.
To put it simply: If Donald Trump wins, not much of this will matter. President Biden’s negotiators can still endorse ambitious NCQG and Article 6 targets, but there’s no evidence a second Trump administration will commit to delivering on them. Should Trump win, the U.S. will almost certainly cut itself out of the global climate finance architecture a second time. The Heritage Foundation’s Project 2025 plan, authored largely by Trump associates, not only calls for the U.S. to slash global climate and development funding (as Trump already called for in his first term) but also to withdraw from global negotiating fora entirely. In the breach, Trump administration diplomats will likely stress the importance of gas and non-renewable energy technologies (such as carbon capture) with an emphasis on ensuring domestic energy security and affordability, even as they prepare to gut most if not all of the Inflation Reduction Act and the Bipartisan Infrastructure Law.
A Kamala Harris victory next week will assuredly be much better for both global emissions reductions and the climate diplomacy landscape. While she has outlined no specific proposals for global climate policy in particular, there is also no evidence that she will renege on any U.S. global commitments made in the past four years or attempt to repeal any climate laws.
As president, she will likely preserve President Biden’s key global climate and development policy initiatives, including the Just Energy Transition Partnerships and the Partnership for Global Infrastructure and Investment. She will also likely support the Biden administration’s push to see the multilateral development banks support more investments in climate and development, particularly through mobilizing the private sector. The current World Bank President, Ajay Banga, was nominated by the United States in early 2023 after serving as co-chair of the Partnership for Central America, a private sector-backed economic development initiative launched by Vice President Harris herself as part of her broader engagement with the region. Their shared history suggests that they will continue collaborating on good terms if Harris is elected.
While none of this is directly connected to COP29 (and putting doubts about the efficacy of these programs aside), it speaks to the Biden-Harris administration’s commitment to, at the very least, platforming global climate and development issues. But will Harris actually deliver on the U.S.’s commitments to the NCQG or otherwise meaningfully increase the amount of public spending devoted to global climate and development goals? Probably not ― although in that case, Congress will be the more likely culprit, not her.
Attempts to appropriate additional funds for global climate programs are cursed with a severe case of legislative inertia. Congress did not significantly slash funding for global climate priorities during the first Trump presidency, but it also did not raise it much during the Biden presidency. Last year’s bipartisan debt limit negotiations didn’t help, of course. But even in the early Biden presidency, when Democrats had their narrow trifecta, Congress massively undershot Biden’s budget requests for global climate-related priorities. In fiscal year 2022, Congress passed less than half of what Biden requested; since then, presidential requests for global climate spending have ballooned in size, while appropriations have stayed flat.
This divergence reflects a stable short-term equilibrium: The Biden administration can showcase the full range of its commitments and bona fides and blame Congress for its failure to deliver on any of them, while Congress can coast on the spending cap deals it made to avoid government shutdowns. But it also ignores the planet-sized elephant in the room — that there’s been no new spending on mitigating climate change. Regardless of who is president, there’s only so much discretionary funding they can ever reallocate toward priority programs absent additional appropriations.
(Here it seems pertinent to remind everyone that the U.S. has never endorsed the global consensus framework of “common but differentiated responsibilities,” which would mean acknowledging a quasi-legal obligation to provide climate finance to Global South countries, on account of the fact that Congress has never been enthusiastic about this. The chances that anyone changes their tone are slim.)
In summary, even if Harris comes out on top on Tuesday, the U.S. will still be stuck in a holding pattern with respect to its global climate priorities. This puts the Biden administration’s COP29 negotiators in a vise: Pushing for a low NCQG gives other countries ground to criticize the U.S.’s inadequate ambition and care for the Global South relative to its ability to contribute, but pushing for an ambitious NCQG also gives other countries greater reason to criticize the U.S. if it fails to deliver. Ambition was never the problem; it has always been the delivery.
Optimistically, a Harris victory at least prevents the U.S. from being a roadblock to other countries’ climate action. But at a time when major Global North donor countries are cutting their aid budgets, American unwillingness to finance solutions to global climate and development challenges makes the rest of the world more dependent on private capital and, in turn, more vulnerable to market downturns, interest rate hikes, and capital outflows. (Alternatively, it makes Global South countries more dependent on petrostate wealth and Chinese imports for macroeconomic stability, although they may be less able to count on large Chinese capital inflows from here on out.) As expert report after expert report has detailed, climate change mitigation or adaptation simply will not happen at scale across the Global South without substantial new external financing.
Still, in lieu of new financing, a Harris administration could stress that efforts to catalyze private investment in the Global South (including through voluntary carbon markets) and reform global taxation also contribute to global decarbonization. And it could continue to argue that the U.S. is doing its part to decarbonize if it manages to pass more landmark climate and green industrialization laws like the Inflation Reduction Act. But it would be false to argue ― as President Biden and Treasury Secretary Janet Yellen have done at times, particularly in 2022 ― that the Inflation Reduction Act helps lower the cost of clean tech uptake across the Global South. This is not true — the credit for making clean technology, particularly solar energy, cheaper and more accessible for the Global South goes decisively to China. The U.S. is nowhere close to becoming a major clean technology exporter or a bona fide partner in green industrial transformation for any Global South country, policymakers’ pretensions to the contrary.
One prominent member of Harris’s advisory team, President Biden’s former National Economic Council Director Brian Deese, is trying to change that, advancing ideas like a “Clean Energy Marshall Plan” as an opportunity to deliver on both domestic industrial policy priorities and demands for global leadership vis-a-vis China; his writing exemplifies how American climate diplomacy is being subsumed into national security planning. (Deese is also a Heatmap contributor.) Tactically, this might work in the near-term: The bill to reauthorize the Development Finance Corporation, which would boost the U.S.’s ability to invest in decarbonization-related priorities across the Global South and particularly critical minerals supply chains, cleared the House Foreign Affairs Committee with bipartisan support over the summer. But this is not a strategy that on its own centers the climate and development needs of Global South countries.
So while a Democratic victory next week would certainly be a step toward continued climate action, and while what the Biden administration negotiates at COP29 will at least set a floor for future U.S. commitments (even if that floor is performative), we won’t see a major departure from the status quo unless a Harris administration can convince legislators that American leadership requires a lot more American money.
“We are not going back” ― this much is true. But it would be nice to go forward, too.
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